Michael Covel’s blog has an excellent post with some back-of-the-napkin math. It’s an elegant way to describe the largest issue facing investors: not the economy, unemployment, or housing, but their own behavior.
Source: Michael Covel, Carl Richards
Research shows that bad behavior is most likely to manifest itself when the markets are under stress and investors are very bearish, like now. Find a good, adaptive strategy that you are comfortable with (we hope it will be relative strength) and stick to it.
Posted by Mike Moody 
